Almost two-thirds of people would consider using property to fund their retirement, according to The Equity Release Council.
73 per cent of people would consider using housing equity as part of their later life finances, finds the Council's report, with more than a quarter of a million (257,168) retirees expected to consider downsizing by 2017, while 59,347 will look into equity release.
Research undertaken among almost 2,000 UK consumers of all age groups highlights the fact that while some of today's pensioners might be able to rely on income from pensions, investments and benefits, going forward more and more retirees realise the critical role their property will play in retirement.
The research - undertaken to coincide with the launch of The Council (formerly SHIP) - reveals that while expected reliance on property decreases with age as people build up other assets, over half (55%) of today's 55-64s still believe it will play some part in their retirement finances.
The most common way that people would consider accessing the value in their homes would be via downsizing (45%) followed by renting out a room (10%) and then equity release (7%). In practical terms, this means that in 2017 over 59,000 retirees will be looking at what role equity release can plan in their retirement financing.
Those who have a second property such as a buy-to-let investment or holiday home might consider renting out the property for income (17%) or selling the property (7%) if they needed to improve their retirement finances.
When asked to list what they thought would be the top sources of income in retirement, an employer pension (44%), private pension (39%) and savings/investments (36%) came out on top. However - overall - 61% said property would be one of the top sources of finance in retirement.
Nigel Waterson, Chairman of The Equity Release Council, said: "This research clearly shows that more and more people are considering using their property as part of their retirement finances. This might mean choosing to downsize, rent a room out or use equity release - or any combination of the above.
"With such a heavy potential reliance on the equity tied up in UK residential property, it is vital that consumers receive accurate information and access to specialist advice and products which have excellent safeguards. Therefore we are delighted to launch The Equity Release Council which for the first time will look to bring together all aspects of this industry to promote the highest standards of consumer protection and education."
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